Transitioning from Web2 VC to Web3 Building

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Why I left web2 to build in web3, and why you should too
I have 10 years of experience, with 5 years as a professional investor. I have experience in advising LPs with regards to portfolio construction and manager selection; and investing in startups out of a venture capital fund. During my time professionally investing full time, I realized that you are simply making the wealthy wealthier.

Additionally, unless you are the GP of a fund and have significant carry in the fund, your economics are capped. As a result, I realized that the potential to build generational wealth is not only by investing in transformative companies, but by building transformative companies. 

That said, as I began to think of emerging technologies and industries with the highest probability to build generational wealth, it was clear to me that I had to find a space with a blank technological canvas that has the potential to transform how the world works today. To me, that is web3.

What is web3 and why does it matter?

Today, computing is controlled by a handful of companies, which coincidentally are some of the largest companies in the world in terms of market cap. Some may argue that computing services (e.g. cloud computing) are the most significant growth drivers for such businesses. And that’s all subject to change, thanks to web3.

Web3 isn’t just a temporary fad of technology, but a fundamental paradigm shift in how the internet, as we know it, works. Blockchains change the way computing works, which impacts the way information and value are transmitted on the internet. This is key. 

Why now?

As, Chamath Palihapitiya best said it during summer 2020…. “follow the fucking breadcrumbs”…

Regardless of any type of investing, whether it’s early stage venture capital, growth equity, or private equity, every investor always considers the team. Leveraging the same principle, if you track where all of the smartest developers are building, it’s in web3. 

Moreover, majority of web2 investors have now started to allocate capital to web3, meaning sophisticated and smart money is now entering the ecosystem. 

Given the amount of builders in the web3 ecosystem coupled with the amount of smart money flowing into the ecosystem, we are starting to see novel ideas spin up more frequently than ever. 

What’s the best way to break in?

Outside of polishing up your resume and preparing for interviews, I highly encourage the following:

  • Subscribe to leading newsletters and research outlets, such as Delphi Digital, Messari, and The Block
  • Buy crypto via a trusted platform, such as Coinbase
  • Use your crypto by interacting with DeFi applications and buying NFTs, such as Compound, Aave, OpenSea, Coinbase NFT
  • Join a DAO or community in web3 via Discord or Slack group
  • Continue to follow the breadcrumbs via looking at on chain analytics, such as Dune Analytics, DeFi Llama, dApp Radar, and Nansen AI
  • Reach out to Get OfficeHours to speak with a Coach specializing in Web3

Schedule a time to connect with a Coach here.

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